If you have ever been denied credit at the cashier counter then you know all about embarrassing moments, and you wish the ground would just open up and swallow you whole.
Of course, it doesn’t, and you are left there, red-faced, walking out as quickly as you can.
If this has you fearful of returning to the store, below are some great tips to help you repair your credit score and improve your creditworthiness.
Consolidate Your Debt
If you have a number of debts with different providers and you are simply paying the minimum amount each month, then you aren’t improving your financial situation. In fact, you are barely paying the interest owed.
Instead, consider a debt consolidation loan. These work by closing all of your existing lines of credit and store cards and moving the balances over to one larger amount. THe benefit is that you only make one easy to manage payment each month.
When taking on this tip, be sure to read the fine print when it comes to any introductory rates. Many credit providers will offer you a low-interest rate if you transfer your debt to their services, however, the rate often increase s drastically once the promotional period has expired. Be sure that, once the rate changes, you can still afford the repayments and it is still financially viable option for you.
Make a Realistic Budget
The worst thing that you can do is to create a budget which you just can’t stick to. Why? Because as soon as you blow out one item, it snowballs into another, then another, and then another, until you have fallen off the budget wagon and have no money again.
Instead, plan for entertainment and shopping. For example, at the start of the month, consider buying a few blank movie ticket to use throughout the month or set aside an allowance for during the month when you want to do a bit of shopping at the Groupon Coupons page for Famous Footwear. Whatever it is that you enjoy, be sure to allow for a small amount in your monthly budget.
Doing this will help you to consistently save, which is an aspect of your financial situation which can positively impact your credit score and worthiness.
Pay Your Bills on Time
Each time that you are late with a payment, your credit score is affected. Along with this, any lender will be able to see these records each time that you apply for a line of credit.
While there isn’t much that you can do about your previous late payments, you can take steps to make sure that your future payments stay on track. Consider ideas like moving your bills over to direct debit so that you don’t have a chance to be late is a great way to keep your finances on track.
Just because you have a bad credit rating now doesn’t mean that it will follow you for the rest of your life. Not unless you allow it to by not making any of the changes mentioned above.